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Asian economies are expected to witness a holding up of exports in 2018, further, feeding through into domestic demand, according to a recent report from ANZ Research.
Core inflation pressures should remain contained as the economic slack will diminish only slowly. Nonetheless, selectively, some central banks are expected to take advantage of this period of strong growth to normalize monetary policy, particularly as real interest rates are at or close to historical lows.
"Strong growth will also anchor Asian currencies although there should be greater differentiation in performance," the report added.
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